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What are Determinants of Supply?

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❶The reason for this is that if there are more people that want an item than there are items, the price has to go up to make it go to only those that can afford it. However, unlike the other determinants of supply, the expectations of the supply can be quite difficult to generalize.

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Supply Determinants
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In the skin of the fruit, there is a large amount of a natural substance called Hydroxycitric Acid (HCA). This is the active ingredient in Garcinia Cambogia extract… that is, the substance that produces the weight loss effects. Bottom Line: Garcinia Cambogia is a plant often used in Asian recipes. The skin of the fruit contains a substance called Hydroxycitric Acid (HCA), which is the active ingredient.

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Although not a determinant of individual firm supply, the number of sellers in a market is clearly an important factor in calculating market supply. Not surprisingly, market supply increases when the number of sellers increases, and market supply decreases when the number of sellers decreases.

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Determinants of supply are the factors that affect the supply of a product or service and that cause a shift in the supply curve. However, these factors are held constant (according to the law of supply) to alleviate the effect of the law of supply especially with relation with quantity supplied and the supply price.

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Since most private companies’ goal is profit maximization. Higher production cost will lower profit, thus hinder supply. Factors affecting production cost are: input prices, wage rate, government regulation and taxes, etc. 2. Technology: Technological improvements help reduce production cost and increase profit, thus stimulate higher supply. Determinants of supply (also known as factors affecting supply) are the factors which influence the quantity of a product or service supplied. The price of a product is a major factor affecting the willingness and ability to supply.

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Start studying Determinants of Supply. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Aside from prices, other determinants of supply are resource prices, technology, taxes and subsidies, prices of other goods, price expectations, and the number of sellers in the market. Supply determinants other than price can cause shifts in the supply curve.